50% of Colombo condos sell out pre-construction : report

Most condominiums (considered luxury real estate) in the country's business capital of Colombo experience an average pre-construction sale ratio of around 50%, according to a report by the local office of global big four audit firm KPMG, in conjunction with Research Intelligence Unit (RIU).

The report titled 'Sri Lanka Real Estate Market Brief', said that "more prestigious developments like the Empire, Emperor, Lumiere and Trillium tend to sell around 80% of their units by completion of construction. Meanwhile, the established buildings like Royal Park and Iceland Residencies have very few apartments available for sale or re-sale."

More>>

(Source: Sunday Times)

SOUTH AFRICA’S SUN CITY TO INVEST $800M IN SRI LANKA TOURISM

South Africa’s Sun City resort will invest $800 million in a tourism project in Sri Lanka, the head of the island nation’s state-run Tourism Board said on Friday.

Sun City resort is run by South African gaming and hotels group Sun International Ltd.

It will be the largest ever investment in the country’s leisure sector, which is booming since the end of a 25-year war.

“Sun City of South Africa is now going to make an $800 million investment in a 200-acre private property,” Nalaka Godahewa, head of the Tourism Board told Reuters in an interview.

The investment will be made on Sri Lanka’s hotel city in Katana, a coastal town located 15 km north of Colombo, he said

More >>

(Source: Ada Derana)

Sri Lanka Repeals 100% Land Tax on Foreigners

The Sri Lankan government is scrapping the 100 percent tax levied on foreigners buying land in that country in favor of a new special land tax to be unveiled in the 2012 budget.

The new tax will remove restrictions on foreigners buying and developing land anywhere in the country, and will also close loopholes which have allowed many foreigners to buy land in Sri Lanka tax free. It is also thought that removing the tax will increase tourism and property sales to foreigners. The overall aim of the decision is to increase the revenues coming into government coffers from the sale of land to foreigners, sources from the Finance Ministry told reporters.

More>> 

(Source: The Epoch Times)

Sheraton to build hotel in Sri Lanka's capital Colombo

Sheraton Hotels and Resorts, the largest Starwood Hotels and Resorts Worldwide brand, will build a hotel in the Sri Lankan capital on land originally offered to a Chinese firm, a government official said on Sunday.

The island nation's junior economic minister said the government has completed negotiations with Sheraton to allocate the land, earlier offered to China National Aero Technology Import and Export Corporation (CATIC).

Last month, Sri Lanka annulled a $500 million investment deal with CATIC after it refused to sell the beach front land outright to the state-run Chinese conglomerate as agreed earlier.


More>>

(Source: Daily Mirror)

Dispute with CATIC over Galle Face deal

The Chinese investor in a multifunctional complex near Galle Face Green has refused their advance payment (to the government) after the government‘s policy decision that land will not be sold outright to them.
CATIC or China Aviation Technology Import-Export Corporation has said that instead it would require land on outright purchase terms. It has said it did not favour a 99-year lease for the same property. 
Its demand comes amidst conflicting legal positions taken by the Chinese aircraft manufacturing firm and the government. CATIC has threatened to seek legal relief on the grounds that assurances of an outright sale of land were given to it. It also cites the case of Shangri-La Hotels, a project for which land encompassing the Army grounds has already been given.


More>>

(Source: Sunday Times)

Govt. plans land audit

The Government is planning a comprehensive audit of the country‘s public and privately-held land assets. The public sector property audit will be conducted under the first phase of this initiative. The Ministry of Lands and Land Development will present a paper indicating modalities of a full audit of state and private land covering a wide spectrum of issues including updating of land records; survey, demarcation and protection of lands; efficient use of land; encroachment of land, the extent and reasons thereof, effectiveness of encroachment and removal actions.


More>>


(Source: Sunday Times)

Colombo waterfront lands adjoining Beira Lake up on lease on instalment cum upfront payment

The government is offering prime Colombo land at a mix of an installment cum upfront payment basis for a 99 year lease deal, a top official said. Prime, urban waterfront land adjoining the Beira Lake at D. R. Wijewardena Mawatha, Colombo 10 will be made available for development transforming the area as a leisure and entertainment hub of Colombo.
With basic infrastructure already existing, the terms of allocation of the crown land are long-term or 99 year leases at market value. Nihal Fernando, Director-General, Urban Development Authority (UDA) said that a considerable percentage of the land value has to be paid at the time of assessing the land and the balance should be paid in continuous installments within a period fixed by the (UDA). “ The former UDA head office at D.R. Wijewardena Mawatha which has five acres will also be offered for local or foreign investors for development,” he told a representative audience at a knowledge sharing conference on the role of real property development in an emerging economy in Colombo on Thursday. "The Beira Lake would be dredged and the water would be cleaned along Vauxhall Street to ensure a clean environment," he said.

More>>

(Source: Sunday Times)